Billing Cycle

A billing cycle is the period of time a credit card company or utility provider uses to calculate your charges and generate your bill. It typically lasts about a month. During this time, all your transactions—purchases, payments, and adjustments—are recorded. At the end of the cycle, the provider totals these activities to determine how much you owe. You usually have a grace period to pay your bill without interest. Understanding your billing cycle helps you manage your finances, know when your bill is due, and track your spending effectively.